MATW · Matthews International Corporation

Matthews International reported fiscal Q2 2026 results with sales of $258.6 million, down 39.5% year-over-year, primarily due to the divestitures of the SGK business (May 2025), warehouse automation, and European packaging businesses (December 2025). Gross margin improved to 39.4% from 33.7% a year ago, driven by a favorable mix shift and cost savings. GAAP operating loss was $3.2 million, compared to operating profit of $5.9 million in the prior year, impacted by $3.9 million loss on divestitures and $16.3 million loss on debt extinguishment. Net loss attributable to Matthews was $21.8 million, or $(0.69) per diluted share, versus a loss of $8.9 million, or $(0.29), last year. On a non-GAAP basis, adjusted EPS was $0.37, up from $0.34, reflecting lower interest expense and corporate costs. Adjusted EBITDA was $44.7 million, down from $51.4 million, due to divestitures and lower Industrial Technologies results, partially offset by Memorialization growth and lower corporate costs. The Memorialization segment reported sales of $215.3 million, up 4.7%, driven by the Dodge Company acquisition and price realization, with adjusted EBITDA of $48.8 million, up 8.4%. Industrial Technologies sales fell to $43.4 million from $80.8 million, reflecting the warehouse automation divestiture and challenges in engineering, including the Tesla dispute; adjusted EBITDA was negative $3.3 million. The Brand Solutions segment (now only Propelis equity method) contributed $9.6 million in adjusted EBITDA. Management maintained its fiscal 2026 adjusted EBITDA guidance of $180 million, which includes the company's 40% share of Propelis. The company also redeemed $300 million of 8.625% Senior Secured Notes, reducing interest expense. A quarterly dividend of $0.255 per share was declared, payable May 25, 2026.